Synchronica appeared to strengthen its hand in its battle against takeover by rival Myriad Group, after positive news this week sent its shares up as much as 13 per cent.
The Aim-listed company, which provides email and messaging software for low-end smartphones, announced a $1.5m contract with a Chinese handset manufacturer.
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Synchronica licenses software to operators such as Telefónica and América Móvil in South America, and Hutchison Whampoa in Hong Kong.
Synchronica also said it anticipated better than expected revenues of $23m for the 2011 financial year, and that profits rose over the key end-of-year selling period.
Swiss-listed Myriad, whose bid for Synchronica at the beginning of the month was rejected, is expected to raise its offer price. No numbers regarding the bid have been disclosed. Under market rules Myriad has until January 31 to “put up or shut up”.
Synchronica said its acquisition of Nokia’s operator-branded messaging system for £16m in June also helped to push revenues up by an expected 111 per cent year on year. However, the shares gave up their gains to end slightly down on the week.
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